News

November 4, 2021

Senate moves to bail out Works Ministry from N420billion debt

water resource bill

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***Appreciates FG’s efforts on road projects nationwide

By Henry Umoru, ABUJA

THE Senate has said that it will collaborate with the House of Representatives and  the executive to bail out the Ministry of Works through an emergency fund in order to clear the N420billion owed contractors by the Ministry on road projects constructed across the country.

Senator Adamu Aliero, All Progressives Congress, APC, Kebbi Central led Senate Committee on Works declared this during the 2022 Budget presentation and defence session by the Minister of Works, Babatunde Fashola.

Move for an emergency fund by the National Assembly to clear the N420billion debt incurred by the Federal Ministry of Works on already executed road contracts by its contractors, was sequel to the presentation before the lawmakers by the Works Minister.

The Senators have however hailed the federal government on a series of road projects being constructed across the six geo-political zones of the country.

In his presentation, Fashola had told the Senators that the total money owed contractors on already completed contracts on road projects is  N420billion.

According to him, the liability is far above the N350billion projected for funding of road projects in the 2022 budget, adding that aside from the N420billion outstanding debts owed contractors,  there is a need for N45billion emergency fund for road repairs on a yearly basis as done in other countries. 

Fashola said. “For roads to be in good shape at any time of the year for users, in Britain for example intervention from a special fund, is made to put roads in good shape particularly after Winter.

“Here in Nigeria, since the raining season is the period roads and bridges used to have problems, fund for emergency fixing of any affected one should be put in place which may be between the radius of N45billion “

Worried by the position of the Ministry as far as execution of road projects and payment for contracts are concerned, the Chairman of the Committee, Senator Adamu Aliero who told the Minister that the National Assembly will intervene for raising the N420billion owed contractors, said, “This committee and that of the House of Representatives will meet with the leadership of the National Assembly for needed collaboration with the executive on how to raise the money and offset the debt.

“The N350billion proposed for road projects in the 2022 budget should be used for completion of the ones that are up to 70% execution across the country.

“Road sector is very important and vital in evaluating the performance or otherwise of any government, the very reason the federal government should continue with the massive road projects being executed across the country.

“Honourable Minister, for us in this committee and by extension, the Senate, the tempo should be sustained in presenting concrete things to Nigerians in 2023 for the purpose of election.

“We shall from this end collaborate with the executive for an emergency fund to clear the N420billion liability as required motivation for key players in the sector to do more.”

Earlier the Minister in his submission on the   2022 budget, said that a  total of N450billion was proposed for the Ministry and its Parastatals for capital, overhead and personnel estimates, adding that the focus of 2022 Budget Proposals of the Ministry is on completion of some priority road projects, especially those on Route A1 – A9.

He said, “These are roads and bridges that lead to ports and major agricultural hubs and carry Heavy goods vehicles across the six geo-political zones “

He specifically declared that the second Niger Bridge will be completed next year.

Members of the committee, as usual, took up the Minister on the state of Federal roads in their states and got explanatory answers from him.

He however informed the lawmakers that the federal government has resolved not to execute any road project, affected state government is not ready to pay compensation to those concerned.